Never Underestimate Central-Bank Groupthink

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Never Underestimate Central-Bank Groupthink
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Heard on the Street: Western central banks could diverge less than markets expect—Getting it wrong is less costly if others get it wrong too, argues jonsindreu

Markets increasingly believe monetary policy will chart different paths across Western countries, but divergence could be short livedJerome Powell, as the chair of the U.S. Federal Reserve, appears to hold the country’s economic health in his hands. It is a coveted role that has earned him both praise and criticism. Here’s how balancing aggressive and conservative policy got him to the top.

Seeing how Western economies are all in different places, maybe central banks will also try to go in different directions. Then again, maybe not.Continue reading your article with

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